Lift maker Kone is close to finalizing a €29bn acquisition of rival TK Elevator, marking one of Europe’s largest takeovers in recent years, according to sources. The deal, which could be unveiled as soon as Wednesday, follows TK Elevator’s €17bn purchase by private equity firms Advent and Cinven in 2020 from Thyssenkrupp. The German lift maker, generating €9.2bn in revenue, had previously explored an IPO and a sale, with CEO Uday Yadav citing aging populations as a demand driver. Kone, a past bidder in TK Elevator’s 2020 split, now aims to integrate the company’s 30% of 22 million global lifts—many over 20 years old—into its operations. Kone and TK Elevator, along with Advent and Cinven, have not yet responded to requests for comment.

TK Elevator, bought by Advent and Cinven’s consortium (including Abu Dhabi Investment Authority and RAG Foundation) in 2020, owns 30% of 22 million global lifts, with 30% over 20 years old and potentially refittable. Uday Yadav, CEO, told the FT in February that aging populations would increase demand for elevators, a trend he expects to spread beyond Europe to China and other regions. Kone, a past bidder, sought to acquire TK Elevator when it was carved out of Thyssenkrupp but lost to Advent and Cinven’s consortium, which also included the Saudi Arabian group Alat, which acquired a 15% stake last year.

The €29bn deal, if finalized, would represent a substantial return for Advent and Cinven’s owners and position Kone as a stronger competitor in the lift manufacturing sector. TK Elevator’s €9.2bn revenue and aging fleet of lifts, many needing refitting, add strategic value to the acquisition. The move underscores the growing demand for elevators in aging populations, a trend that the companies aim to capitalize on. Kone’s potential takeover of TK Elevator could reshape the European lift market, integrating the German firm’s assets and expertise into Kone’s operations.